In a defined contribution or "DC" plan, the amount of the contribution is defined by the plan. In other words, you "know" how much goes into the plan (or at least the formula for determining it), not the benefits that may eventually be paid out. A defined contribution plan has individual accounts for each participant in the plan, and it can include both employer and employee contributions. The most common DC plan is the 401(k) plan, but it may also include 403(b) and 457 plans, as well as profit-sharing and employee stock ownership plans (ESOPs).
These contributions are invested at the direction of the employer (as in most profit-sharing plans), the employee (as in 401(k) plans), or according to the plan itself (employee stock ownership plans, or ESOPs). The employee benefits directly from any investment gains in his or her individual account—or suffers from any investment loss. There is no "insurance" for these benefits, as there is with defined benefit plans.
May 08, 2013
IRAs, DC Plans Top Retirement Savings Vehicles
IRAs, DC Plans Top Retirement Savings Vehicles
May 8, 2013 (PLANSPONSOR.com) – Assets in employer-sponsored retirement plans, IRAs, and annuities totaled $19.5 trillion at year-end 2012, up 8.6% from year-end 2011.
Rebecca Moore
editors@plansponsor.com
According to the Investment Company Ins
May 07, 2013
DOL Seeks Comments About Lifetime Income Data
DOL Seeks Comments About Lifetime Income Data
May 7, 2013 (PLANSPONSOR.com) – The U.S. Department of Labor (DOL) is seeking comments about rules for lifetime income illustrations provided to defined contribution (DC) plan participants.
Kevin McGuinness
editors@plansponsor.com
An advance notice
April 30, 2013
Institute Raises Budget Concerns to Legislators
Institute Raises Budget Concerns to Legislators
April 30, 2013 (PLANSPONSOR.com) – The SPARK Institute submitted a letter to legislators raising concerns about proposed 2014 budget provisions that could impact retirement savings.
Kevin McGuinness
editors@plansponsor.com
The statement, submitted
April 30, 2013
Mercer Launches Retirement Education Website
Mercer Launches Retirement Education Website
April 30, 2013 (PLANSPONSOR.com) – Mercer has launched an online retirement planning and education program for 401(k) plan participants to better prepare them for their financial future.
Kevin McGuinness
editors@plansponsor.com
The website, “Uncover